Last Thursday’s signals were not triggered, as none of the key levels were ever reached.
Today’s AUD/USD Signals
Risk 0.50%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Long Trade
· Long entry following some bullish price action on the H1 time frame immediately upon the next entry into the zone between 0.7740 and 0.7729.
· Place the stop loss 1 pip below the local swing low.
· Adjust the stop loss to break even once the trade is 20 pips in profit.
· Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trades
· Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7738 or 0.7775.
· Place the stop loss 1 pip above the local swing high.
· Adjust the stop loss to break even once the trade is 20 pips in profit.
· Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
AUD/USD Analysis
Last Thursday I took a bullish bias above the level at 0.7725. The price has since oscillated around that level without truly going anywhere. Now there is a new, lower resistance level which has formed at 0.7738. It has acted as both support and resistance and is currently acting as resistance again. As it has held twice, a break above the level should see bullish follow-through, but the resistant area at 0.7775 should hold (note the confluence with the bearish trend line in the price chart below). Alternatively, if the level continues to hold, the price should move down to at least the round number at 0.7700 again.
There is nothing due today concerning the AUD or the USD.